an engine for future european growth an engine for future european growth economic and social...

“ “ An Engine for Future European An Engine for Future European Growth”Growth”

Economic and Social Development Economic and Social Development through Knowledge Intensive Service through Knowledge Intensive Service

Enterprises Enterprises

KIS Partnering Forum – Brussels 19th February 2009

Professor Alan Barrell

A Preview

Context – The World TodayThe World Today – What’s Changed ?

Globalisation, Europe and the Service Globalisation, Europe and the Service ImperitiveImperitive

Lets ImagineImagine A World of Innovations Innovations and EntrepreneursEntrepreneurs Symbiosis,Symbiosis, Synergy,Synergy, Size,Size, ScaleScale – – and and

Service DeliveryService Delivery ModelsModels and RealitiesRealities FundingFunding Innovative Service Companies $$$$$$ A A New AgeNew Age of of Creativity and and Innovation

Casting an Eye on the World’s Financial Crisis – What’s changed ?

Who said these words and When

“I believe the banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property until their children wake up homeless on the continent their fathers conquered”

Who said these words and When

“I believe the banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property until their children wake up homeless on the continent their fathers conquered”

Thomas Jefferson 1778

And what about these…

“The budget should be balanced, the Treasury should be replenished, Public debt should be reduced, the arrogance of officialdom should be tempered and controlled, and the assistance to foreign lands should be curtailed, lest our Nation become bankrupt. People must again learn to work, instead of living on public assistance”

And what about these…

“The budget should be balanced, the Treasury should be replenished, Public debt should be reduced, the arrogance of officialdom should be tempered and controlled, and the assistance to foreign lands should be curtailed, lest our Nation become bankrupt. People must again learn to work, instead of living on public assistance”

Marcus Cicero 55 BC

But - think BoomBoom ….not Gloom….many successful businesses startedstarted in

recessions….

“I started the Cobra Beer Company in a deep Recession – and it proved to be the best time for me….introducing something innovative and exciting changed the way people thought about Indian Food and Beer”

Lord Karan Bilimoria

Founder – Cobra Beer

But the eye on the World shows lotslots of changes….its not just the finances….

The Changing Horizon

EnvironmentIssues

The death ofdeference

New employmentpatterns

Organisations

Globalisation

Technology

Changes in Industrial Structure - UK% of Total Employment - UK Government Foresight Report

0

10

20

30

40

50

60

70

80

90

100

1971 1981 1991 2001 2011

Manufacturing

All Services

Changes in Industrial Structure - Europe% of Total Employment

0

10

20

30

40

50

60

70

80

90

100

1971 1981 1991 2001 2011

Manufacturing

All Services

Global Dynamics – Manufacturing has Migrated

Two fifths of the Worlds people live in the two fastest growing large economies – China and India

Education, Wealth Creation and New Knowledge are at the heart of Economic Planning in Asia

Growth in Asia is far ahead of Europe.

Dynamic Growth in Manufacturing Base

CASH is in place in the Asian economies – as well as brainpower- China has US$ 2 Trillions of reserves

Labour and Material cost advantages +++++

Lets put CHINA into our picture and context….Some of China’s Achievements

• Compound growth of GDP at 9% since 1995, sixth in the world

• One of top 10 trading nations • The most popular FDI destination• The largest mobile phone market • The second largest PC market • The third largest advertising market

And we have no time to mention India, Brazil, Korea and others….

The World’s Factory

China alone already produces:

70% of world’s toys 60% of world’s shoes 65% of world’s air-conditioners 65% of world’s microwave ovens

Now more cars, laptops, ICs, mobile phones…

Realities – labour and materials costs give great competitive advantage. Trends not reversible.

Sources of Competitiveness

Creativity Risk

Speed Reputation

Cost Values

Learning Information

Wherever Competition comes from….things can change fast – Today’s Peacock can be

Tomorrow’s Feather Duster !

And then there is Technology - Impact of the Continuous Technology Revolution

Compared to an average DAY in 2003….

All international phone calls1971

All airline passengers1975

All mobile phones 1984

All emails 1992

All SMS1998

Source: Analysys, World Bank and ITU

And Technologies are working together -Three Pervasive and ConvergingConverging Technology

Platforms

BIO TECHPharmaceuticals

DiagnosticsResearch/Info

ToolsIndustrial

GenomicsBioinformatics

Proteomics

INFO TECHHardwareSoftware

Communications

NANO TECHElectricalStructural

BiomedicalEnergy & Environment

BiosensorsBiochipsBioelectronics

MicrofluidicsNanobiotechnology

Drug Delivery

NanodevicesNanosensors

Nanoelectronics

Europe and The Service Imperative

If Services are to be the economic engine – how can we excel?

Exploring Creativity, Imagination, Enterprise and Entrepreneurship

From Imagination to Realities – Living Examples

Harnessing Technology – Applications Focus The Inspiration of Untapped Human Potential Emerging Sectors to Explore – e.g. Cleanech

Spirit of Enterprise and InnovationDiscovery and New Knowledge

And - With this background….Let’s IMAGINE

Einstein on IMAGINATION….

“Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world”

Albert Einstein 1879 - 1955

Who ever heard of Albert-Szent-Gyorgyi ?

He, a Nobel Laureate said………

“Creativity is no more than looking at the same thing as everyone else and

thinking something different.”

“You look at things and ask - why?

but I dream of things that never

were and ask -

George Bernard Shaw

why not?”

So - thinking of Imagination….What’s different about EntrepreneursEntrepreneurs ?

Europe’s Entrepreneurial Imperitive – Josef Schumpeter - 1911

“Entrepreneurs blow gales of creative destruction.”

Role of the entrepreneur in transforming economies by developing:

New products New methods of production New ways of organizing Untapped raw materials Enhanced competitive performance

Just what EuropeEurope Needs to build that future Growth Engine – but add

“New Ways to Deliver Services”“New Ways to Deliver Services”

Timing can be everything….Is the time right?....

““There is nothing more powerful than There is nothing more powerful than an Idea whose time has come……”an Idea whose time has come……”

Jules Verne

This strange looking team started in a recession….but got their timing right

And in 30 years, became a powerful engine of Growth, Change and Service Innovation

Microsoft Corporation, 1978

Charles Darwin – “Natural Selection Adaptability and Survival” Darwin’s

Bicentenary this year

Natural Selection, Adaptation, Symbiosis Synergy and Service Delivery

NHS Innovations East LtdSupporting vital Health Innovations

• NHS Innovations East Ltd is one of a national network of Innovation Hubs

• Funded by the Department of Health, the Department of Trade and Regional Agencies

• Provides Intellectual Property Services to NHS Organisations and Professionals in the East of England

• For the benefit of patients and the improvement of Healthcare

• Contributes to NHS revenue generation by Licensing Technology and Services

• Has Proof of Concept Fund for investment in Innovations

• Can help to spin-out and form new Companies from NHS

• Also known as NHS Innovations East Ltd• One of 11 Health Enterprise Hubs in UK (9 in England)• A Not for Profit Service Company

• 15 Professionals helping Health Care

• Professionals Exploit Innovations

• 70% of Innovations are “Service Delivery”• 30% Technology based• Founded 4 years ago – more than 600 Service Delivery Innovations

identified and 250 supported in development• Annual Innovations Competition attracts more than 100 entries –

many Service Delivery Innovations

Completing the Jigsaw – putting technology to work

TechnologyCustomer

need

Innovative service

company

Completing the Jigsaw – Service Delivery Innovation

TechnologyCustomer

need

Innovative service

company

Proximity of Learning, Research and Practical Application

“The Innovation Campus”

R&D Education

Applications

Where open innovation and new service companies can thrive

Technology and Service Companies and Synergy – Open Innovation and the “Innovation Campus”

HEALTH

KNOWLEDGE CREATION

INFORMATION and COMMUNICATIONS

TECHNOLOGY

Basic Research

Sound & vision

Bio-pharmaceuticalsComputing

Publishing

Medicalservices

Bio-informatics

Medical devices and scientific instruments

University/ Research Institutes

Inkjet printing

Wireless

Telecoms

Networking

Technology ConsultingMedicalresearch

Education

Entrepreneurial Overlap – “Joined Up Thinking and Actions” – Coherence and Common Purpose in

Communities

EDUCATION&

RESEARCHincluding Universities

INDUSTRY&

BUSINESS

GOVERNMENTNational & Local

Funding Innovative Service Companies – “Show me the Money $$$$!”

Maturity

Risk

“Our Money”“Our Money”

Family and Friends and FoolsFamily and Friends and Fools

Business AngelsBusiness Angels

Early Stage VCEarly Stage VC

Expansion CapitalExpansion Capital

B

A

N

K

F

I

N

A

N

C

E

??

Seed FundsSeed Funds

Pre-IPOPre-IPO

“How do we get to the money ? Where is the $$$$ trail ?” Connecting and Information

Points and Principles

Networks and Networking – importance +++++ Business Schools and Entrepreneurship Centres Region

wide and cross border Other Entrepreneurs / Support and Mentoring Structures Online Channels – numerous eg…. www.funded.com “Network Nodes” – Individual referrals Cross Border contacts Attitudes and Culture France and it’s Wealth Tax….Thank you M. Sarkosy !

Show me the MONEY! – So maybe we can we find Show me the MONEY! – So maybe we can we find investors hanging out here?....investors hanging out here?....

The Early Stage Business Balance – what do investors look for? In ANY innovative

company ?

And they like to see experienced Chairman and Directors - Mentors for Innovative Service Companies

Inspired Leadership

Enthusiasm

Bullshit

Courage

OptimismVision

Creativity

Management

Research & Analysis

Caution

Process

Financial Control

Market Knowledge

A New AgeNew Age of Creativity and Innovation – New Engines for Growth….

Knowledge Intensive Service Businesses – Knowledge Intensive Service Businesses – Catalysing the New European EconomyCatalysing the New European Economy

Seeking New Pathways to exploit potential for Seeking New Pathways to exploit potential for Knowledge and Wisdom Sharing – through Knowledge and Wisdom Sharing – through Open InnovationOpen Innovation

Harnessing Technology to Sustain and Harnessing Technology to Sustain and RenewRenew

Seeking Competitive Advantage through Seeking Competitive Advantage through Imaginative New Business FormationImaginative New Business Formation

In In Pursuit of Excellence ! of Excellence !

“Excellence can be achieved, if we:Care more than others think is wise,Risk more than others think is safe,

Dream more than others think is practical,

Expect more than others think is possible.”

Deborah Johnson-Ross

Maybe Entrepreneurs think this way?....Innovative Service Companies need to if they are to Excel….

Thank you for your attention….

More on my website –

www.alanbarrell.com

E-mail – alan@alanbarrell.com